Treasury Bills Flag Growing Anxiety Over U.S. Default

Many Traders Deem Default Risk Remote

Some investors in the $11.6 trillion U.S. Treasury debt market are anxious about a potential default by the U.S. government even as many traders and analysts deem the risk remote.

Corporate treasurers, money-market fund managers, some foreign central banks and financial firms that buy and sell government securities have been unloading very short-term Treasury bills, known as T-bills, due on Oct. 17, 24 and 31, traders and investor said. The bills they are unloading mature on or around Oct. 17, which is the deadline for...